The contention is that Pakistan has 5.2 million small and medium enterprises (SMEs). A statistic based not on any recent census, but an extrapolation based on growth rates, corroborated by surveys conducted in the past. It is astonishing that the last census of economic establishments was conducted sixteen years ago in 2005. It is a pity that decisions have to be made on non-credible data.
Pakistan’s economic policies traditionally favour large scale manufacturing (LSM). LSM by its very nature is less job creating and relies, in Pakistan’s case, on imported industrial raw material, thus exacerbating the import bill. SMEs have remained unloved in-terms of government dole outs, tax breaks or even a cheerleading squad. Financing remains skewed towards large-scale industries or multinationals. At the end of June 2021, SME financing stood at a meagre Rs437.57 billion or just 6.57 percent of the total private sector credit in the country with only 172,893 SME borrowers. Statistics paint a dismal picture.
Resourceful lobbies with 78,000 large industrial units against the 5.2 million small guys continue to have the ear of policymakers, political leaders, financers and international industrial partners. The Small and Medium Enterprises Development Authority (SMEDA), the premier body for supporting SME development in the country, even after 23 years of its existence has made little dent to convince at some credible level the kind of impact SMEs have had in turning countries into...
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